Best Insurance Lawyers in Hawaii

About Insurance Law in Hawaii, United States

Insurance law in Hawaii governs the relationships between policyholders, insurance companies, and third parties in the state. It covers a wide range of insurance types, including health, auto, property, homeowners, life, and commercial insurance. The Hawaii Insurance Division, part of the Department of Commerce and Consumer Affairs, is responsible for regulating insurers, protecting consumers, and ensuring compliance with state insurance statutes. Insurance law also addresses issues like policyholder rights, insurer obligations, claims handling, licensing of companies and agents, and legal remedies for disputes.

Why You May Need a Lawyer

While many insurance matters can be handled directly with your insurer, there are several situations where legal assistance may be necessary. Common scenarios include:

• Disputes over denial of coverage or claims
• Allegations of bad faith by an insurance company
• Unfair settlement offers following an accident or property damage
• Ambiguities in policy language or unclear terms
• Insurance fraud accusations (either as claimant or accused)
• Defending against lawsuits involving insurance liability
• Help with appealing an insurance company's decision
• Issues with health, disability, or workers' compensation benefits

A knowledgeable insurance attorney can help you understand your policy, your rights, and the best options for dispute resolution.

Local Laws Overview

Hawaii has specific insurance regulations that distinguish it from other states. The Hawaii Revised Statutes, particularly Chapters 431 and 432, contain most of the state’s insurance laws. Key points to consider include:

• No-Fault Auto Insurance: Hawaii is a no-fault state. Drivers must carry Personal Injury Protection (PIP). This means your own insurance pays for your injuries or damages, regardless of fault, up to policy limits.
• Homeowners and Hurricane Coverage: Due to the risk of natural disasters, standard homeowners' policies in Hawaii may not cover hurricane damage. Separate hurricane coverage may be required.
• Good Faith and Fair Dealing: Insurers in Hawaii are legally obligated to handle claims fairly and promptly, and cannot unreasonably deny or delay payment of valid claims.
• Health Insurance Regulations: Hawaii has unique laws, such as the Prepaid Health Care Act, which often provides greater protections than federal law for employees and families.
• Consumer Protections: The Insurance Division oversees unfair and deceptive practices, agent licensing, and company solvency.

Timelines for filing claims and lawsuits, available remedies, and procedures for filing complaints are also governed by state law.

Frequently Asked Questions

What types of insurance are legally required in Hawaii?

Drivers must have auto insurance, including bodily injury, property damage liability, and Personal Injury Protection. Employers generally must provide health insurance. Homeowners are not required by law to have insurance, but mortgage lenders may require it.

Can I sue my insurance company if my claim is denied?

Yes, if you believe your claim was wrongly denied or handled in bad faith, you may have grounds for legal action. Consult with an attorney to evaluate your case.

How long do I have to file an insurance claim in Hawaii?

Filing deadlines depend on your policy and the type of claim. Many policies require prompt notice, sometimes within 30 days. Legal actions based on insurance denials are generally subject to a two-year statute of limitations, but this can vary.

Does Hawaii’s no-fault law affect my ability to sue after a car accident?

Yes. You typically cannot sue the other driver unless you suffer serious injuries exceeding a certain dollar threshold in medical expenses, or in cases of death or permanent disability.

What should I do if I suspect insurance fraud?

Report suspected fraud to your insurance company and to the Hawaii Insurance Division, which has a Fraud Branch dedicated to investigating these cases.

What is bad faith in insurance?

Bad faith occurs when an insurer denies, delays, or mishandles a claim unlawfully or unreasonably. This could include failure to investigate, unreasonable denial, or offering less than a fair amount for a valid claim.

Are hurricane damages covered by regular homeowners insurance?

Not always. In Hawaii, many standard homeowners policies do not include hurricane damage. Separate hurricane coverage may be needed, available through private companies or the Hawaii Hurricane Relief Fund.

Can my insurance company cancel my policy without notice?

Hawaii law restricts insurers from canceling policies arbitrarily. Insurers must provide advance written notice and must have valid reasons such as non-payment or misrepresentation.

Who regulates insurance companies in Hawaii?

The Hawaii Insurance Division within the Department of Commerce and Consumer Affairs regulates all insurance business in the state, including licensing, market conduct, and consumer protection.

How do I file a complaint against an insurance company?

You can submit a complaint to the Hawaii Insurance Division. The Division investigates and acts on violations of insurance law.

Additional Resources

• Hawaii Department of Commerce and Consumer Affairs - Insurance Division: Oversees all insurance matters and handles consumer complaints
• Hawaii State Bar Association: Offers lawyer referral services for individuals seeking legal help in insurance disputes
• Legal Aid Society of Hawaii: Provides free or low-cost legal assistance for qualifying residents
• National Association of Insurance Commissioners: Offers consumer guides and insurance company complaint data

Next Steps

If you are facing an insurance-related dispute or need legal guidance in Hawaii, consider the following steps:

• Carefully review your insurance policy, including all endorsements and correspondence
• Document any communication with your insurer and gather relevant evidence (photos, repair bills, medical reports)
• Attempt to resolve the issue with your insurance company directly, following their claims or appeals process
• If unresolved, submit a complaint to the Hawaii Insurance Division
• Consider consulting with a qualified insurance lawyer. The local bar association or legal aid organizations can help with referrals
• Always act quickly, as there may be strict deadlines for filing claims, appeals, or lawsuits

By understanding your rights and the local laws, you can better protect your interests and ensure fair treatment under your insurance policy.